Finance Department

1999-2000 Annual Report

Mission Statement

The goal of the Finance Department is to continually strive to improve the quality, timeliness, and distribution of financial and assessing data, as well as, the efficiency of the procedures necessary to generate this data. The finance department attentively provides a variety of services to all other departments within the Township, general employees and administration, the Township Board and a variety of constituents within the community.

Finance Service Statement

The Finance Department was created in June 1999, through the implementation of an administrative reorganization adopted by resolution of the Township Board. The Township Board recognized the need to consolidate and streamline the financial management services required of the Township.

The Finance Department performs a wide range of finance and accounting duties. This department has the overall responsibility of all accounting and finance related functions. This responsibility is discharged in accordance with Federal and State regulations, ordinances enacted by the Township Board, directives from the Township Manager, and is consistent with Governmental and Financial Standards established by the Government Accounting Board. The Director of Finance, Ann Silver, being the Chief Financial Officer of the Township, is charged with the responsibility of protecting and safeguarding the assets of the Township.

The Finance Department consists of finance and budgeting administration, accounting and control, accounts payable, payroll and benefit administration, risk management and assessing. The Department consists of Ann Silver, Finance Director, and Becky Davis, Payables/Benefits Assistant. The Finance Department also provides general managerial and administrative oversight to operations of the Assessing function of the Township. Timothy E. O’Donnell is the Township Assessor and Carol Knopp is the Tax Assessing Assistant. Carol also provides support for the finance department as well.

The Finance Department is responsible for the books of original entry for the assets, liabilities, equities, revenues and expenditures of the Township. In Grosse Ile Township, the Finance Director develops and maintains tracking systems for all financial transactions, projects, road construction costs, encumbrances, and any other financial needs of the Township Board and Administration. The department generates and distributes many internal and external management reports. The department is responsible for the reconciliation of all account balances in the general ledger so that an annual audited financial report can be produced as required by state statue.

The Finance Department processes all purchase orders and accounts payable. This function includes approval, data entry, proper account distribution, reconciliation, and filing of all invoices by vendor. Discrepancies between vendor statements and invoices are resolved prior to processing. Approximately 6,000 claims for payment are processed each year. An encumbrance and council warrant list is produced and presented to the Township Board for approval at each regular Board meeting.

Payroll processing for all Township employees is executed in the Finance Department. This processing includes data input, coordination and payment of employee benefits, withholding and reporting of income taxes, maintenance of records and payment of all other payroll deductions. Payroll processing and record keeping functions are performed for approximately 100 employees, each with unique benefits. The Finance Department is responsible for administering all employee benefits offered.

The Finance Department is responsible for the Township’s debt management by coordinating arrangements for all capital financing and debt issuance. In the past year, the Township Building Authority sold two separate bond issues. One for $2,400,000 to finance the renovation of Township Hall and one for $650,000 to finance an addition to the Water’s Edge club house for a restaurant facility. A bond was also issued for $410,000 to finance the bridge raising special assessment project. The Township’s previous bond issues have been rated by Standard & Poor’s and Moody’s. Standard & Poor’s and Moody’s are the best-known and most influential credit rating agencies. Their role as raters is to assess the risk of certain bonds through the study of all information provided to the public, and assign to the issue and issuing company grades that accurately reflect the company’s ability to meet the promised principal and interest payments. Although somewhat different in their letter usage, Standard & Poor’s and Moody’s both rate bonds in descending alphabetical order from A to C. The most recent available ratings from Standard & Poor’s and Moody’s were AA- and A1 respectively.

Yet another function of the Finance Department is to inventory and perform insurance monitoring for general Township liability. The primary purpose is to preserve the Township’s assets through loss prevention, control and financing. The department processes all claims against the Township.

The citizens of Grosse Ile are assured of sound fiscal planning and management through the budget process. The Director of Finance, Ann Silver, serves as the budget officer of the Township. The Budget is prepared in accordance with the State Budgeting Act. The budget process establishes priorities for the fiscal year. The Department monitors the Township financial condition through budget amendments, forecasts, and the review of department performance measurements. In addition, salary wage spreads, personnel costs, and labor contract analyses are processed. The budget is the chief indicator of the Township’s past performance as well as a means for determining annual goals and objectives. An annual budget is presented and adopted each year at the annual meeting.

Assessing Service Statement

The goal of the Assessor’s Office is to provide equitable distribution of the property tax burden under current law; administer the Board of Review, compile Special Assessment Rolls, and to serve the community as a valuable source of land and building information and legal descriptions. The people served directly by this office include residents, property owners, real estate agents, title examiners, developers, buyers and sellers of real estate. The Assessor annually prepares the real and personal property tax rolls, producing a major source of funding to the Township.

Township Assessor Timothy E. O’Donnell handles the assessing duties of the township. Clerical assistant is Carol Knopp, who also assists the Finance Office. The Assessor’s Office, which falls under the jurisdiction of the Township Supervisor, is responsible for the assessments of all real and personal property within the boundaries of the Township (including exemptions). All 6,607 residential properties are reviewed in preparation for the 1999 assessment year. The 1999 State Equalized Value (SEV) for the Township of Grosse Ile was $534,241,080. The State of Michigan Constitution mandates that all property must be assessed at 50% of its market value. Multiplying the assessed value by two gives the estimated true cash value of the property. Assessed values increased 9.46% in 1999.

The Assessor’s Office keeps records on all properties including field sheets (square footage) and plat maps (lot size). The Assessor’s Office keeps track of ownership changes, maintains maps of parcel boundaries, keeps descriptions of buildings and property characteristics up to date, keeps track of individuals and properties eligible for exemptions and other forms of property tax relief, and most importantly, analyzes trends in sales prices, constructions costs, and rents to estimate the value of all assessable property. This office maintains legal descriptions, property address, taxpayer name and address, parcel identification number, and SEV and taxable value. Please contact the Assessor’s office to record a name and/or address change.

The Board of Review, a commission made up of Grosse Ile residents appointed by the Township Board, meets each March to hear taxpayer appeals on property values. If the property owner does not agree with the assessed value, he or she may state their case at the March Board of Review. In 1999, the Board of Review considered 291 appeals. Residents are invited to appeal in person or by mail. The Board of Review decides appeals on value as well as income each year. The members of the Board of Review are Frank De Mare, Judy Cholger, Clarence Hicks and Bill Mead.

The Homestead Exemption and Property Transfer Affidavit Programs mandated by the changes brought about by Proposal A in 1994 are administered by the Assessor. Affidavits are available in the Assessor’s Office. The Homestead Exemption requires that you own and occupy the house you are claiming the exemption for on or before May 1st. If you own your home and are currently occupying the dwelling, you are eligible for the reduced millage rate under Proposal A. A homestead affidavit must be filed with the Assessor’s office. Property Transfer Affidavits must be filed with the assessor when there is a change in ownership on a property. In 1999, 375 property transfers were received in the Assessor’s Office along with 326 homestead exemption affidavits and 273 rescission affidavits.

The Assessor is responsible for the creation and accuracy of the assessment and tax rolls. The assessment and tax rolls consist of taxpayer name and mailing address, legal description, SEV and Taxable Value, homestead percentage and calculated millage spread. The assessor is also responsible for all changes to the assessment and tax rolls.

Creation of special assessment rolls is the responsibility of the Assessor’s Office. This function ensures the equitable disbursement of the cost of improvements to all benefited parties. The most recent Special Assessment District compiled is the Bridge Raising District.

Annual reports for tax capture for the Downtown Development Authority and Brownfield Authority are calculated by the Assessor’s Office. In addition, the annual review and report of the Industrial/Commercial Facilities Tax recipients is completed and submitted.

The Assessor along with the Finance Director is responsible for the calculation and computation of the township millage levy, which must be filed by September 30 of each year with Wayne County. The Assessor’s major function is the valuation of real estate and personal property, which involves statistical review and county and state equalization. The office projects revenue from taxes and compiles and reports tax rates from all the local taxing units. (Grosse Ile Schools and Wayne County) The mills are levied and spread against the 1999 taxable value of each property by the Assessor as follows (homestead and non-homestead millage rates):

Tables/Graphs

• The Distribution of Your Property Tax Dollar
• 2000-2001 General Fund Budget by Revenue Category
• 2000-2001 General Fund by Department
• Uses of Funds - All Township Budgets
• 2000-2001 Sources of Funds - All Township Budgets

Bond Rating Codes

1999-2000 Annual Report

1999-2000 Annual Report

Table of Contents

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